business lecture

1. - BBA 1101 -
INTRODUCTION TO BUSINESS
Summer 2014-15
Faculty: Shama Islam

2. Foundations of Business and Economics
Chapter # 1
LECTURE 1

4. The Birth of Business…
Over the year people have become more and more
dependent on others. We can’t produce all we need to
live in this society.
Once people exchange the surplus goods that they
have after their own consumption.
This is called Barter System.

6. Bartered Off !
 It is the direct exchange or act of
trading goods for another, between
two or more parties, without the use
of any medium of exchange like
money.
 Bartering benefits individuals,
companies and countries that see a
mutual benefit in exchanging goods
and services rather than cash, and it
enables those who are lacking hard
currency to obtain goods and
services

7. So…Let’s Get Down To “Business”
Business is the exchange of goods, services or money for the
mutual benefit or profit.
Who will produce what?
He who has skills and ability or
specialization in specific job will
produce or serve or involve in that
task.
International Opportunities
As the shortage of resources and as
they are not distributed equally all
over the world, people will go across
the border for international business.

8. Standard of Living
A measure of how well a person or family
is doing in terms of satisfying needs and
wants with goods and services.
Free Enterprise
It means that private businesses are able to
conduct business activities competitively
with minimal government regulation.
Inflation
Rate at which the general level of prices
for goods and services is rising and
purchase power is falling. (example:
inflation rate goes up to 2%)
So…Let’s Get Down To “Business”

9. Core of Business:
The Human Element
Business needs people as
owners, managers,
employees, and consumers.
People need business for the
production of goods and
services and the creation of
jobs, whether business is
transacted in Bangladesh,
USA, Japan or Ghana.

10. Owners
People, who own a business as well as those
who invest money in one, do so because they
expect to earn profit.
Managers
The person responsible for operating the
business may be the owner or a professional
manager employed by the owner. An owner-
manager is also called an entrepreneur.
Core of Business:
The Human Element
The owner-manager sets his/ her own
objectives, whereas a professional manager
attempts to achieve objectives set by others.

11. Employees
Employees supply the skills and abilities needed to provide a
product or service and to earn a profit. Most employees
expect to receive an reasonable wage or salary and to be
given regular increases in the amount they are paid for the
use of their skills and abilities.
Core of Business: The Human Element

12. Consumers
A consumer is a person or business who purchases a goods or
services for personal and organizational use. A business
enterprise attempts to satisfy consumer needs and desires
while earning a profit.
Core of Business: The Human Element

14. Business Objectives
Survival
Survival objective is an obvious objective. Other objectives can be accomplished
only if the business enterprise survives.
Growth
Growth is an objective because business does not stand still. Market share
increase, personal and individual development and increase productivity are
important growth objectives.
Social Responsibilities
In recent years, meeting social responsibilities has been recognized as important
objectives. Businesses, like each person in society, must accept their
responsibilities in areas such as pollution control, eliminating discriminatory
practices and energy conservation.

15. Profit
The profit objective plays the major role in business.
Business Profit
The difference between business income and business expenses
Business Objectives

16. Social Responsibility
Businesses, like each person in the society, must accept their
responsibilities towards the society in areas like pollution control,
energy conservation, eliminating discriminatory practices, etc.
Business Objectives

17. Activities Performed to
earn Business Profit:
 Risk Taking
Toyota invested millions of
dollars in promoting and
selling small cars in the US.
Today, this Japanese
corporation is the largest
small car seller in the US
market.
Business Objectives

18. Activities Performed to earn Business Profit:
 Evaluation of Demand
Business Objectives
- KFC - Domino’s Pizza - Boomers

19. Activities Performed to earn
Business Profit:
 Organized Management
Management of people,
technology, materials and
capital. Efficient planning ,
organizing, controlling,
directing , and staffing can
earn satisfactory profit.
Eg. Cola Cola , GP ,
Banglalink
Business Objectives

20. Opportunity Cost:
Something you given up in order to get something else.
Mr. Mahmud is working in Company X. Earning 10000 BDT per
month. His office is near to his house. But he could earn BDT per
month working in Company Y. which is far from his house.His
opportunity cost is 10000 BDT.
Business Objectives

21. Selling Price: All costs of making and selling a product,
including taxes
Economic Profit: What remains after the expenses and
opportunity costs are subtracted from income.
Business Objectives